Equity crowd-funding up and running to open new investment doors

Equity crowd-funding up and running to open new investment doors

FROM gin distillers to energy-boosting mouth strips, opportunities are popping up for investors to grab stakes in start-up Australian businesses with as little as $50.

The Australian Securities and Investments Commission last month licensed seven online platforms that let anyone pump money into emerging businesses, and despite a slow start there is expected to be a surge in opportunities online soon.

It’s equity crowd-funding, where individuals buy shares in businesses well before they list on the stock exchange. This early-stage investment potentially delivers them the biggest profits but also carries the greatest risks.

One of the seven licensed companies, Equitise, is currently raising money for Xinja, Australia’s first independent digital bank. It’s already raised more than twice as much as its minimum $500,000 target through investment parcels as low as $250. About 700 investors have each injected an average $1800.

Equitise expects to unveil more investment opportunities within weeks, including a gin distiller, brewery, boutique clothing company and food chain.

Co-founder Chris Gilbert said some of the opportunities would be well-known brands.

“The minimum investment will be as little as $50 and open to anyone over the age of 18,” he said.

“It’s great to see investors appetite at the retail level. We have led the charge to change this legislation for the past three and a half years to give all Australian investors the opportunity to invest in early stage companies.”